- AUD/JPY bounces off weekly low but fails to stay firmer.
- Australia Retail Sales jumps the most in 2021 during October.
- Failures to cross 50-SMA, descending Momentum line keep bears hopeful.
- 78.6% Fibonacci retracement of bear’s radar, bulls need validation from three-week-old horizontal area.
AUD/JPY struggles to overcome weekly low, despite the firmer Aussie Retail Sales data favoring the quote’s rebound during early Friday. The cross-currency pair picks up bids to 82.42 at the latest, printing a three-day low with 0.60% daily loss.
Australia Retail Sales not only crossed 2.5% market consensus and 1.3% prior reading but also marked the heaviest increase in October to jump with a 4.5% YoY print.
Even so, the AUD/JPY remains pressured around the 61.8% Fibonacci retracement (Fibo.) level of October’s upside amid the downbeat Momentum line.
The corrective pullback remains elusive until crossing 83.10 resistance confluence including the 50% Fibo. and 50-SMA.
Also acting as an upside filter is the horizontal area comprising multiple highs marked since November 08 around 84.15-20.
Meanwhile, a clear downside past 61.8% Fibonacci retracement level of 82.30 will direct the quote towards 78.6% Fibo. near 81.25.
While the 82.00 threshold may act as a buffer during the fall, the last month’s bottom of 79.90 will be crucial to watch past 81.25.
AUD/JPY: Four-hour chart
Trend: Further weakness expected
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